The symmetrical triangle is a continuation chartist figure.
It is formed by two converging trend lines that are symmetrical about the horizontal. The upper line is called “resistance”. The lower line is called “support”.
For the symmetrical triangle to be bullish, the movement preceding the formation of the triangle must be bullish. For the symmetrical triangle to be bearish, the movement preceding the formation of the triangle must be bearish.
The symmetrical triangle is valid if there is an oscillation between the two lines.
The symmetrical triangle pattern is considered valid if the price touches at least 3 times the support line and 2 times the resistance line.
The target price of a symmetrical triangle is determined by the height of the base of the triangle carried over to the break point. Another technique is to draw a line parallel to the triangle’s support / resistance line from the first contact with the resistance / support.
Notes and Statistics: #
- The exit is most often done at 2/3 of the triangle. This is the output level that offers the best performance.
- The target price of the ascending triangle is generally reached before the point of the triangle.
- Avoid taking a position if the break / exit occurs before 2/3 of the triangle.
- In 54% of cases, the exit is bearish.
- In 61% of cases, the descending triangle is a continuation figure.
- In 54% of cases, the price target of the triangle is reached when the support is broken down.
- In 64% of cases, after exiting, the price carries out a pullback in resistance on the support line of the triangle.
- More than half the time, when a false breakout occurs from the bottom, the exit is finally made from the top. On the other hand, false breakouts from above are rare with only 6%.